On October 10, 2001, an Orange County man pled guilty to federal criminal charges arising out of a fraudulent prime bank investment scheme. Scott Yoshizumi, age 40, of Fullerton, California, pled guilty to charges of securities fraud, mail fraud, wire fraud, and money laundering based on his ownership and control of Concord Capital, Inc., of Cerritos and La Palma, California.

The United States Attorney for the Central District of California prosecuted Yoshizumi for operating a fraudulent "Ponzi" scheme that offered fictitious investments to individuals throughout the United States. As part of his guilty plea, Yoshizumi admitted that he defrauded over 100 investors of more than $17 million. Yoshizumi admitted that he spent this money on personal expenses, such as houses and luxury cars. Yoshizumi further admitted lying to investors about his personal background. Yoshizumi told investors that he was a legitimate businessman with significant experience in the financial world. In fact, Yoshizumi had two previous federal criminal convictions for investment fraud, had previously filed for personal bankruptcy, and had none of the professional or educational credentials that he bragged about to investors.

United States District Judge Audrey B. Collins accepted Yoshizumi's guilty plea and set the matter for sentencing on January 7, 2002. Under the terms of the plea agreement filed with the Court, the government and Yoshizumi have jointly recommended that Yoshizumi be sentenced to 96 months in federal prison.

In November 2000, the Securities and Exchange Commission filed an emergency civil action against Yoshizumi, Concord Capital, and others alleging fraud in the offer and sale of this investment. The Commission's civil action is pending in federal court. See Litigation Release 16809, November 24, 2000.